Compensation for financial professionals "outpaced that of the national workforce as a whole" in 2007, with an average salary increase of 4.5 percent, more than 36 percent higher than the national average, according to a new survey.
The Association for Financial Professionals' (AFP's) "2008 Compensation Report," based on a study of a 12-month period (January 1, 2007 to January 1, 2008) found that chief financial officers (CFOs) had an increase in base salary of 4.6% ($185, 700 in 2008 up from $177,500 in 2007). VPs of Finance fared even better with a 5.6 percent increase ($171,500 in 2008 from $162,400 in 2007).
The average increase for management positions as a whole was 4.8%, according to the AFP report. Managers of Treasury and Finance enjoyed the greatest salary increase of 6.6 percent ($91,300 to $97,300). Other positions reported on in the survey include Treasurers (whose salaries increased 4.9%), Directors of Treasury and Finance (5.4% increase), Assistant Treasurers (5.1%) and Cash Managers (5.0%).
"AFP's 2008 Compensation Report shows that treasury and financial professionals saw salary increases that were significantly higher than national workforce averages," Jim Kaitz, President and CEO of AFP said in a press release announcing the survey results. "Treasury and financial professionals at all levels are delivering great value to organizations. They are demonstrating analytical and strategic decision-making skills; the desire to earn advanced certifications and degrees; and the desire to move their careers forward and work hard to make organizations succeed."
The survey also found that bonuses could "add significantly to a financial professional's total compensation package." AFP found that on average, bonuses for financial professionals were "equivalent to 16 percent of their base salary in 2007" For a CFO, this translated into an average bonus of $60,700.
Meanwhile, AFP also noted "substantial salary differences between those professionals with advanced degrees and those without." The survey found that professionals with an MBA earned an average salary 19 percent higher counterparts holding just a bachelor's degree.
For more information, go to www.AFPonline.org/research.